Episode Highlights

• Ethereum has transitioned to the more energy-efficient proof of stake consensus mechanism.
• This transition will lead to lower transaction fees, faster transactions, and a 99.5% reduction in energy consumed by the Ethereum network.
• FTX faced a liquidity crunch in November that eventually led to its collapse, as well as the collapse of its sister company Alameda Research.
• It appears FTX funneled funds, including user deposits, to Alameda Research to prop it up earlier this year as other centralized entities were failing.
• Centralized crypto entities have started publishing proof of reserves to reassure customers
• DeFi protocols have continued to work as programmed. 

Helpful links

Ethereum Merge and Proof of Stake

• https://www.google.com/search?client=safari&rls=en&q=ethereum+merge&ie=UTF-8&oe=UTF-8
• https://www.coinbase.com/learn/crypto-basics/what-is-mining
• https://hbr.org/2021/05/how-much-energy-does-bitcoin-actually-consume
• https://www.nytimes.com/interactive/2021/09/03/climate/bitcoin-carbon-footprint-electricity.html
• https://ark-invest.com/articles/analyst-research/bitcoin-myths/

The FTX Collapse

• https://www.coindesk.com/ftx-news-coverage/
• https://www.coindesk.com/markets/2022/11/15/defi-protocols-are-winning-users-as-centralized-crypto-exchanges-suffer-ether-outflows/

Proof of Reserves and Centralized Exchange Transparency

• https://www.kraken.com/proof-of-reserves
• https://www.investopedia.com/proof-of-reserves-6830204
• https://niccarter.info/proof-of-reserves/